OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and issuer credit rating to “bbb” from “bbb-” of SWBC Life Insurance Company (SWBC Life) (San Antonio, TX). The outlook for both ratings has been revised to stable from positive.
The rating upgrades reflect SWBC Life’s continued growth in risk-adjusted capital as a result of its consistently profitable operating results and the lack of dividend requirements by the parent, Southwest Business Corporation (SWBC). SWBC also presents opportunities for growth in premiums through its business relationships with auto dealers and credit unions. The recent name change to SWBC Life further ties the company to SWBC.
Offsetting these positive rating factors is the recent reduction in SWBC Life’s net premium, which is tied to the ongoing challenges in the lending environment. A reversal in the decline in premium income would be expected as lending activity increases.
A.M. Best believes SWBC Life is well positioned at its current rating level. Future negative rating actions could occur should SWBC Life experience a material decline in capitalization or changes in its reinsurance relationships that largely support its net premium volume.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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